Buying a vehicle

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UNIT 6: MAJOR PURCHASES BUYING A VEHICLE

description

Buying a vehicle. Unit 6: Major purchases. steps in the car buying process. Identify wants and needs How many miles do you typically drive? Do you haul anything? (camper, boat, trailer) Do you need to do any off-roading? What features would you like to have if you could afford them? - PowerPoint PPT Presentation

Transcript of Buying a vehicle

Page 1: Buying a vehicle

U N I T 6 : M A J O R P U RC H A S E S

BUYING A VEHICLE

Page 2: Buying a vehicle

STEPS IN THE CAR BUYING PROCESS

1. Identify wants and needs• How many miles do you typically drive?• Do you haul anything? (camper, boat, trailer)• Do you need to do any off-roading?• What features would you like to have if you could afford

them?2. Determine what you can afford

• Monthly payment =no more than 20% of money after ALL OTHER EXPENSES are paid

• Other considerations…gas, car insurance, and annual license fee ($75)

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STEPS IN THE CAR BUYING PROCESS

3. Identify and research your choices• Carsoup• Edmunds• Autotrader

4. Decide: new or used?

Advantages Disadvantages

New WarrantyLooks nice

ExpensiveDepreciation

Used Less expensive Maintenance

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Ferrari makes a maximum of ____ cars every day. 14

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STEPS IN THE CAR BUYING PROCESS

5. Get Credit Pre-approval• How much $ are you QUALIFIED to borrow?• To get pre-approval…

• Visit a bank/credit union• Loan officer will decide if and how much they will lend you

6. Search for AVAILABLE vehicles in your price range

7. Test drive each vehicle• Compare ride, handling, braking, features, and cost• Try the radio, air conditioning, heat, and

other features• Listen to the engine

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STEPS IN THE CAR BUYING PROCESS

8. Show me the CARFAX!• Locate the Vehicle Identification Number (VIN) on the

dashboard on the driver’s side of the car• Cost

• Initial (vague) report=free• 1 detailed report=$39.99• 5 detailed reports=$49.99• Unlimited reports for a year=$54.99

9. Get the vehicle checked out mechanically• Cost=approx. $150• Brakes, tires

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An airbag takes only ____ milliseconds to inflate after an accident.

40

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STEPS IN THE CAR BUYING PROCESS

10.Determine a fair price• Kelly Blue Book www.kbb.com• Find the estimated fair price• For a new car, the sticker price, or MSRP is shown on the tag

in the car’s window• MSRP=Manufacturer’s Suggested Retail Price• The fair price is between the invoice price (what the dealer paid

for it) and the sticker price11.Negotiate price

• High pressure• Stick to facts & don’t reveal

emotions to seller

Page 9: Buying a vehicle

FINANCING

• Cash• Loan through Car Dealership• Loan through Bank/Credit Union

Page 10: Buying a vehicle

The world’s longest traffic jam was between Paris and Lyon on the French Autoroute in 1980. It was ___ miles long.

110

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LEASING

• Make monthly payments• Give up car at end of time period• End of term, you have the option of purchasing

the vehicle• Why would somebody want to lease?• Can lease a nice vehicle that you wouldn’t be able to

purchase outright

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LEASING

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___% of car owners admit to singing behind the wheel. 90

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VEHICLES AND THE LAW

• Consumer Protection for car buyers• Warranty: written statement about a product’s qualities

or performance that seller assures the buyer are true

• Lemon Laws• Lemon: a car with substantial defects that the

manufacturer has been unable to fix after repeated attempts. It must be…• First year of ownership or under 12,000 miles• Taken car into dealership 4 times for the SAME defect within

that year• Out of service for 30 days

• Allows you to get a new car or your money back

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VEHICLES AND THE LAW

• FTC Used Car Rule• Used Car Dealers MUST inform customer

who will pay for certain repairs• “Buyer’s Guide” Sticker• “As Is” box checked=BUYER pays

for all repairs• “Warranty” box checked=DEALER

pays for repairs to the items listed• Good only for a limited time!